Pfizer beats estimates, but branded drugs disappoint
By Ransdell Pierson
(Reuters) - Pfizer Inc (PFE.N: Quote) reported better-than-expected quarterly results, driven by lower taxes and sales of generic medicines, but revenue from its branded patent-protected medicines brought disappointment.
The largest U.S. drugmaker did not offer any hints on whether it plans to split into two separate companies, a long-mulled potential decision that has kept investors in suspense.
Pfizer, whose shares fell 2.3 percent in morning trading, said second quarter revenue rose 11 percent to $13.15 billion, topping the average analyst estimate of $13.01 billion.
Sales of generic medicines rose 16 percent to $6.04 billion, helped by Pfizer's $16 billion purchase last year of generic hospital products company Hospira.
Although generics beat expectations, BMO Capital Markets analyst Alex Arfaei said sales of Hospira products, at $1.14 billion, were 7 percent below his forecast, and suggested "limited revenue synergies" from that acquisition.
Sales of Pfizer's patent-protected drugs rose 7 percent to $7.11 billion, 2 percent below Arfaei's estimate.
Higher sales of nerve-pain drug Lyrica helped offset disappointing sales of its Prevnar vaccine for pneumococcal infections.
In April, Pfizer terminated a $160 billion deal to acquire Irish drugmaker Allergan Plc (AGN.N: Quote) after the U.S. Treasury Department issued new rules restricting tax inversion transactions aimed at slashing taxes. Continued...